Aaron Opfell

James, sorry for my delay in response. You wrote "the question is in regards to an investment property, not an owner occupied property." Yet in your first response you wrote "Most purchases now require 30% down". I was addressing the latter comment. And, in no way represented that Fannie or Freddie was backing nonowner occ to 90-95%.
-So let me put it to you like this, I fund hard money deals all the time where the buyers only have 20% of the purchase price into the deal. I have other investors doing non owner occ with as little as 10% into the deal, credit and income allowing. Or even 100% financing, if lender allows cross collateralization or payment escrows.
-You wrote: "as for fannie and freddie doing 95% loans, who's providing the PMI...? "
well, for owner occ, as of today(and in declining markets no less):
MGIC (Mortgage Guaranty Insurance Corp) http://www.mgic.com/guides/guides.html for one.
-Furthermore some of the big box portfolio lenders are still writing 95% LPMI loans. I agree that is now much more difficult to get loans funded of that high LTV, asset, credit and income requirements have been bumped, some lenders will not take EA-1 or worse etc etc.

Lea, I appreciate you standing up for me, but I assure you, I don't need it. I never sugarcoat anything to anyone and I can handle someone's opinion. However, there has been a miss-statement of fact here, which I believe has been set straight. I think it is someone else that needs to check their guidelines. - Tue May 6 2008, 16:07

I have to disagree with you on the 30% down issue James.
As a loan officer I can tell you I am still funding 100% financing deals left and right. Even Fannie Mae/ Freddie Mac only require 5%-10% for borrowers with decent scenarios. It is much more difficult to get a loan sure but not such a bleak outlook I assure you.

I concur on the slant of the trend curve but, the market is undeniably becoming tighter in the price range discussed. I personally do not believe it is near a sellers market, merely more inventory being priced correctly and thus moving but real estate is all about interpretation. - Wed Apr 30 2008, 15:49

Investors and cash offers are swamping the -$250,000 and below sacramento market. Increase in offers goes exponetially with these folks becuase lowballers usually have 5-10 offers running simultaneously. Throw in spring and all the FTHB who have moved off the sidelines and we have what *appears* to be a sellers market.
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Please realize however the amount of monthly arm resets and subsequent forclosures will not reach its peak untill mid 2009. In other words, more inventory will continue to come in. On the other side, lending has decreased 80% or so from the peak of cheap credit in early 06' and looks likely to stay that way. You do the math
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To answer your question though, especially choice deals will be harder to find and prices will be more resistant for the moment. Well priced properties may indeed have a slew of offers in them. Good agents will simply adapt to meet the nature of the game. - Thu Apr 24 2008, 13:40

Your suspicions are unfortuantely correct.
While VA loans are like normal loans in that a loan officer can charge whatever they want, and they are written and sold like normal mortgages, CalVET loans are unqiue in that they are made only by CalVET and only directly to the veteran.
-So, in other words, a normal broker or lender cannot offer a CalVET loan. They can package and refer one to CalVET for a very small fixed commission. That is it.
The CalVET of course will not offer VA financing, because it is not a lender. CalVET is funded through california bond money.
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The deed problem the other agent referenced is addressed here, in the CalVEt website FAQ:
"CalVet uses a Contract of Sale as the financing instrument for our loans. What that means is that CalVet purchases the home you selected and takes legal title to the property at close of escrow, and then sells the property to you using a contract of sale. When the loan is paid in full, either when the last payment is made or if you refinance or sell, we issue a grant deed to transfer legal title to you. A document called a Memorandum Agreement of Sale is recorded to show that the contract exists, and you hold what is referred to as the equitable title to the property which gives you all the rights of ownership."
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In closing, it is easy to see why you will not get straight answers from really anyone offering either program. It is true that right now any government/bond funded loan is taking a long time to get now, 60-90 days and that you will face some difficulties with the CalVET requirements. But, you will have trouble with sellers accepting VA loan requirements also. Both VA and Calvet are 100% fiancing, both carry a mandatory VA Funding Fee.
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Good luck. Semper Fi - Thu Apr 24 2008, 13:26

Wow I am really going to resist the urge to plug myself here.
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Often times though, the best refferals for an agent is someone your loan officer reccomends. For example, I have one realtor to whom I referr all my veterans. She is experienced and competent both in VA guidelines and in negotiating. I've worked with her many times and am very comfortable with her. Realtors we reccomend offer a cash incentive to clients to join the program, creditng a part of their comission to you.
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But in general you shoud look for someone that only or mostly represents buyers, that is local to the area you are looking in, that has been in business a long time (check license histories at the link below), that has good communication skills and is "driven". Good agents are often busy so grade them on whether or not they keep the apointments they set, not how long it takes to return calls(if non-emergency).
You spefically want one that has done a VA purchase transaction. Not one that says "Oh, it's fine, I'm a quick learner". There are details with VA financing that must be taken care of the correct way on the Realtor side.
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Good luck with your search. - Thu Apr 24 2008, 12:58

Guy, thank YOU for the laugh now. I try to play the devils advocate on here. What it boils down to is, in general, listing agents normally and prefer to deal with other agents directly. This is for a variety of reasons (some legitmate,some possibly petty) that differ from situation to situation and from agent to agent.
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A response to your response- Occaisonally picking up a new buyer's lead from a listing could mean a "double end" to the deal for a listing agent (similar to hitting the lotto ;). In this situation if it was you the client's listing the agent's behavior here could benefit you. This is tough to explain to anyone not in sales, but, it is near impossible to ignore a potential, obviously interested client especially when it is such a short distance away. I am speaking for me when I say, I wouldn't be shoving it down their throats(rarely does this happen) but you calling does indirectly signal the possibility. Of course the listing is the first priority, but is there a conflict of interest? I doubt it.
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For your response to my C., allow me to clarify: In your line of work, does not the source of a question determine how hard you work to answer it? In other words, if you, as the buyer, call an agent, you could be percieved as not serious, asking frivolous questions. It implys you may only be serious enough to nibble for bits of information rather than having your agent call and do some manuevering in preperation to write an offer. In this situation I cant name many people who would do more than answer your question and attempt to escape. Time is money as we well know.
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You may have better sucess emailing the agent. As the internet and the real estate industry evolves, the role of agents is less central. Personally, I believe that every short sale, without exception, should have the data you're requesting in the multiple listing. I personally instruct my agents to only write offers on approved-approved short sales where a BPO has been done and signed off by the brass. Otherwise one is waiting 60-90 days for an answer.
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Good luck in your search. - Thu Apr 24 2008, 12:47

I am a loan officer, but if i was a practicing agent, and you called me, I would most definately ask you "why isn't your agent calling me?"
Such a question serves several purposes
A) it determines if you do, in fact, have an agent. If you dont, those types of calls are sure fire sources for buyers leads.
B) ok, you have an agent, perhaps they are incomptent, you are frustrated, and that is why you are calling. See A)
C) ok you have an agent, you like them, but it appears this question was too unimportant to ask YOUR agent about it. By implication now you and the question are a waste of time. A commissioned salesperson is not going to want to discuss it in detail, especially if they are busy. (if things are slow, they perhaps answer it)
D) it can also offend the agent because it confuses the relationship of everyone to each other, in other words now the listing agent needs to keep track of what he told you and also the other agent.
E) a majority of the population is uneducated in real estate and thus need agents to represent them. a listing agent may take offence because the gig he signed up for was to work with other real estate professionals.



I am being as candid as possible. Thi - Wed Apr 23 2008, 19:47

If you are a first time homebuyer or have never done a remodel, stay away from the full 203(k) loan. The streamline as others have said is limited to 35K of NON-STRUCTURAL work. Rates vary between 6.5-7.25 and you may excercise the Streamline Refinance to gain a normal FHA fixed rate loan after 6 months or so. Plan for a 45-60 day close with the streamline 203(k) and 60-90 with the 203(k) full. The full version is game for anything, right down to a teardown and rebuild from the foundation. However there are many more people involved and many more restrictions.
Please excercise caution. My company has been doing FHA loans for 19 years yet my loan was the first 203(k) funded in 6 years. Anyone familiar with the program is going to be rusty, not to mention, are they true FHA correspondant? (and not a 'consultant' posing as one).
To sum, the 203(k) streamline is not a bad deal. It is very heavily property-driven, so it will take a good appraiser estimate, realistic contractor bid, and competent realtor and loan officer to fully protect your interests. - Mon Apr 21 2008, 16:03